WHAT HAPPENS NEXT?
For commerce talks to advance, Mr Trump and Mr Xi will must be actively concerned in defining the parameters of a remaining deal. Mr Trump has steered he could quickly communicate with Mr Xi by telephone, which might lend credence to the best-case state of affairs of each side working in the direction of a complete commerce settlement.
Questions come up about how China is ready to divulge heart’s contents to American companies, as Mr Trump claimed, and the way the US is ready to reciprocate.
From China’s perspective, there are a number of steps it will possibly take to scale back commerce imbalances, a significant supply of pressure between the 2 nations.
First, Beijing is able to considerably enhance purchases of American agricultural merchandise and vitality to scale back the commerce deficit. Second, it will possibly take measures to restrict exports to the US, a pattern already rising as exporters diversify into different markets. Third, Beijing can proceed to extend its holdings of US Treasury securities – China is the second-largest holder, with US$784 billion, after Japan. Fourth, Beijing can encourage extra Chinese language firms to spend money on the US.
Nevertheless, many questions stay. What concessions can the US provide China in return?
Can the US loosen up controls over high-tech merchandise, together with semiconductors? Even when Chinese language firms want to spend money on the US, will they be welcomed at a time when even Chinese language-produced garlic is deemed a nationwide safety menace?
Discovering solutions to those questions won’t be simple.
Wang Xiangwei is a former Editor-In-Chief of South China Morning Submit. He now teaches journalism at Hong Kong Baptist College.
